Inside This Report
01 Introduction- About This Report- About RSPO

ABOUT
THIS
REPORT
In November 2022, RSPO released our Impact Report
2022, introducing the new RSPO Impacts Framework
as a comprehensive overview of our journey where
sustainability is balanced with progress. As webelieve in leading with transparency, we proudly
present the Impact Update 2023, a data-focused
publication on the Impact Themes and Indicators
explored in the Impact Report 2022.
The Impact Update 2023 continues to track
our journey as a global partnership to makepalm oil sustainable. Through dedicated efforts
and collaborations with industry players andstakeholders, RSPO’s vision and strategy has paved
the way for positive outcomes in three critical areas:
People, Planet and Prosperity. Maintaining trust in
the palm oil industry remains a core priority for us.
In this report, we present our impacts progress
for the period spanning 1 January to 31 December
2022. References to ‘RSPO,’ ‘us,’ and ‘we’throughout this report pertain to the Roundtable on
Sustainable Palm Oil. We encourage you to explore
this publication alongside the comprehensive RSPO
Impact Report 2022, accessible on our official
website.

About RSPOThe Roundtable on Sustainable Palm Oil (RSPO) isa multi-stakeholder organisation driving positivechange in the palm oil industry, formed in 2004 asa global partnership to make palm oil sustainable.
Since RSPO’s formation, our impact has beensignificant. From seed to shelf, our certified practices
span the entire palm oil value chain. With a growing
global presence and strong support from ourmembers, RSPO continues to grow, expanding ourglobal reach and ability to drive positive impacts.
Join us on this transformative journey towards amore sustainable future for palm oil and beyond.

02 RSPO in Brief- Foreword from the CEO- Letter from the Co-Chairs of RSPO- RSPO in Numbers- RSPO Impacts Framework- RSPO Highlights of 2022
Impact Themes and Indicators
10 Respecting Human Rights- Labour Index- Gender Index- Human Rights Risk
14 Including Smallholders- Smallholder Participation- Smallholder Certification
18 Protecting and Restoring Nature;
Preventing Fire
- Safeguarding Nature- Water Stewardship- Environmental Sustainability Index- Fire Risk
- Remediation
22 Limiting Climate Change- Emissions Management - Avoidance- Emissions Management - Mitigation
24 Advancing Certification- Certification Trends
28 Transforming Markets- Certified Supply- Certified Consumption- Shared Responsibility
Appendices
32 Appendix - Base Data & Glossary

FOREWORD FROM THE CEO
On behalf of the Roundtable on Sustainable Palm Oil, I am honoured to present the RSPO Impact Update
2023, an important touchstone showing us where we are in our sustainability journey.
Over the past year, I have had the opportunity to visit our members and stakeholders all across the world,
not just in closed conferences and executive board rooms, but on the ground, in mills or plantations in far
flung rural areas. As I spoke with people who are part of our mission – whether it was with a smallholder
who described how good agricultural practices have increased her yields, or an owner of a family-owned
business proud of brandishing the RSPO Trademark, an innovator finding ways to make the supply chain
more sustainable, a youth ambassador telling the sustainable palm oil story, or a village leader whose
community has become more resilient through RSPO’s engagement – I formed a deeper appreciation forthe depth and breadth of work that RSPO has accomplished over the past two decades. It was an eyeopening year which has shown me the tremendous impact we continue to achieve through our global
partnership.
As we go through the pages of this year’s Impact Update, released on the cusp of RSPO’s 20th anniversary,
I urge you to reflect on just how far our multi-stakeholder partnership has come, in terms of knowledge,
scale and influence, since the RSPO was conceived in 2004.
Our collective action has achieved positive impacts across a range of social, environmental and economic
indicators: conserving 362,657 hectares of priceless forest, an area roughly 15 times the size of Kuala
Lumpur, and adding 393,035 hectares of certified area to make a total of 4.9 million hectares spread
across 23 countries. Over 44,000 farmers in 12 countries have benefitted from the RSPO Smallholder
Support Fund, which has provided US$4.2 million in funding since 2013. A total of 311 Compensation
Plans have been approved, remediating an area equivalent to the size of Hong Kong. Cumulative GHG
emissions equal to 444,444 cars have been avoided since 2015 (an increase of 49,155 from 2021) –equivalent to the motor vehicle fleet of Cambodia. More than half a million workers around the world
benefit from the working standards provided by the RSPO P&C Certification. These are just the tip of theiceberg of RSPO’s wide reaching impact. Yet beyond the numbers, there are the countless stories of lives
and livelihoods that tell a much bigger impact story.
The progress we have achieved together over the past twenty years has laid a solid foundation for RSPO’s
sustainability story to flourish in the years to come. I am excited to see where our global partnership willtake us over the coming decades. Through our effective and meaningful partnerships, I am confident
that we will continue to deepen our impact as we work together to future-proof the sustainable palm
oil industry.

Joseph D’Cruz
4

Impact Update 2023

LETTER FROM THE CO-CHAIRS OF RSPO
Dear Fellow Members and Stakeholders,Another year, another chapter unfolds in RSPO’s sustainability story. We are approaching an auspicious
moment in the history of our global partnership. In April 2024, we will be celebrating RSPO’s 20th
anniversary, marking a significant milestone since we first embarked on the roundtable process with theambitious goal of sustainably transforming the palm oil sector.
Little did we know back then, since those first seeds of sustainability were planted, just how far our multistakeholder alliance would progress. Today, we have united over 5,600 global members representing
each link of the palm oil value chain, placed 20% of the world’s palm oil production under the strictest
sustainability standards, and helped enrich the livelihoods of countless smallholder farmers byembedding responsible agricultural practices in their production processes.
Yet as the landscape of sustainability continues to expand, so do new challenges emerge, complicatedfurther by numerous and interconnected crises today – from geopolitical conflicts, economic volatility,
biodiversity loss to food insecurity, all of which are overshadowed by the impending climate emergency.
Within the palm oil sector, growing international regulations to address the environmental crisis are
spurring RSPO to step up and scale our actions to amplify our achievements of the past two decades, toensure that the future of the palm oil sector is a sustainable and inclusive one.
The evolving demands of sustainability underline the significance of RSPO’s multi-faceted work,
particularly at such a critical juncture for the world. This latest Impact Update is a barometer of RSPO’s
continued accomplishments as each year passes, showing our progress in a range of sustainability
areas from protecting and restoring nature, championing human rights, uplifting smallholders and ruralcommunities, and limiting GHG emissions to fight climate change.
As we reflect on RSPO’s remarkable sustainability journey and look at what lies ahead, we would like toacknowledge and thank the formidable commitment and efforts of our members for never losing faithin our vision set out twenty years ago. While the work is far from over, we are confident that our strong
partnership will continue to cultivate positive change for people and the planet together in prosperity,
for the next twenty years and beyond.

José Roberto Montenegro

Anne Rosenbarger

Impact Update 2023

5

RSPO in Numbers
RSPO Membership
Ordinary

AssociateAﬃliate

2022
2021
2020
2019
2018
2017
2016
2015
0

2,000

4,000

6,000

RSPO Certiﬁed Area by Region
Indonesia

Malaysia

AfricaLatin America

ROW

2015
2016
2017
2018
2019
2020
2021
2022
0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Impact of
RSPOProduction
Annual CSPOKey
Estimated
ActualCSPO AP - Identity Preserved
2015
2016
2017

CSPO AP - Mass Balance

8.1% of supply from 1% of land

RSPO Certification represents 1.0% of the global vegetable oil crop2018
production area, producing 8.1% of global vegetable oil supply1
2019
2020
2021
2022

332 million ha
globalvegetable oil
0crop area
8.6%
of which

Malaysia
204
is oil palmIndonesia 214
China
1%238
of which
Latin
America 256
is RSPO

5,000,000

10,000,000

SCC Facilities

Certiﬁed
Rest of the world 941
Global vegetable oil crop area

215 million MT
15,000,000
global vegetableoilproduction

215
millionMT

40.2%
of which is

India 117 palm oil
40.2%
Africa 104

8.1% ofwhich is
RSPO Certiﬁed
EuropeGlobal vegetableoil 3,336
production
8.1%

North America 1,021
Includes palm oil and palm kernel oil, as both vegetable oils are produced from the same crop area (oil palm). RSPO area/production fromRSPO Assurance data. Global palm oil data from RSPO estimates sourced from USDA, FAOStat, national sources or industry bodies. Global
vegetable oil data from FAOStat (2022 estimates).
1

6

Impact Update 2023

RSPO Impacts Framework
RSPO Impact
Theme

RSPO Impact
Indicator

Impact Indicator
Description

Respecting
Human Rights

Gender Index

Progress on inclusivity, equal access andempowerment for women through RSPO
Certification
Progress on respecting workers’ rights andlabour conditions through RSPO Certification

Labour Index

Including
Smallholders

Protecting
and Restoring
NatureImpactPillarHuman Rights
Risk

Status and risk level of human rights breaches
within RSPO Certification

Smallholder
Participation

Encouraging and assisting palm oil smallholder
farmers towards sustainability

Smallholder
Certification

Progress on the reach and extent ofsmallholder farmers within RSPO Certification

Safeguarding
NatureProgress on halting deforestation andpreserving biodiversity within RSPO Certification

Environmental
Sustainability
Index

Progress on promoting environmentally
sustainable practices within RSPO Certification

Water
Stewardship

Promoting responsible usage of water andprotecting freshwater ecosystems within RSPO
Certification

Remediation

Upholding responsibility in respect to historicaldeforestation through RSPO procedures

Preventing
FireFire Risk

Limiting
ClimateChangeEmissionsManagement

Progress on climate change goals throughemissions avoidance and mitigation within
RSPO Certification

Advancing
Certification

Certification
TrendsProgress on the reach, extent and traceability of
RSPO Certification in the global palm oil market

Transforming
Markets

Certified
SupplyProgress on shifting global production of palm
oil towards sustainability

Certified
Consumption

Progress on shifting global consumption of palm
oil towards sustainability

SharedResponsibility

Ensuring certified consumption matches
certified production, and all RSPO Members
follow in the spirit of RSPO Principles andCriteria

Progress on mitigating and minimising fire risks
within RSPO Certification

PEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITY

Impact Update 2023

7

RSPO Highlights of 2022
Respecting
Human Rights

544,036 workers
represented by RSPOP&C Certification
globally (+44,036 from
2021)

Labour Index

Respecting
Human Rights

Respecting
Human Rights

Women represent
13.3% and 23.3%
of management
and administration
respectively, in certified
mills and estates

81% of Human Rightsrelated RSPO Complaints
cases closed (+3% from2021)

Gender Index

Human Rights Risk

Including
Smallholders

US$4.2 million in RSSF
funding to support 81
projects and 44,203
farmers in 12 countries
since 2013 (+15 projects,+5,606 farmers from2021)
Smallholder
Participation

Protecting and
Restoring Nature

Use of restrictedpesticides andherbicides significantly
reduced within RSPOP&C Certification

Environmental
Sustainability Index

8

Impact Update 2023

Including
Smallholders

197,767 IS-Credits
worth US$5.5
million bought bydownstream RSPO
Members to directly
benefit certified ISH(+30,746 IS-Credits,+US$1.7 million from2021)
Smallholder
Certification

Protecting and
Restoring Nature

Average water footprintof 0.005 m³/kg within
RSPO P&C Certification,
lower than othervegetable oils (e.g.,soybean, rapeseed)

Water StewardshipProtecting and
Restoring Nature

362,657 ha conserved
under RSPO P&C
Certification (+61,637
ha from 2021) – an area
15 times the size of
Kuala Lumpur

Safeguarding Nature

Protecting and
Restoring Nature

311 Compensation
Plans approved(+73 from 2021) –remediating an area
the size of Hong Kong
(101,176 ha, +29,779
ha from 2021)
Remediation

Preventing Fire

Limiting Climate Change

Probability of 1.2%(-0.2% from 2021) of fire
hotspots within RSPO
concessions (Indonesia
and Malaysia) vs. 12.1%
in non-RSPO concessions

Cumulative GHG
emissions equal to444,444 cars avoided
since 2015 (+49,155
from 2021) – equivalent
to the motor vehicle
fleet of Cambodia

Fire Risk

Emissions Management- Avoidance

Advancing Certification

Advancing Certification

4.9 million ha of certified
area globally across 23
countries (+393,035 hafrom 2021)

Average CSPO yield of
4.5 MT/ha vs. Averageoverall palm oil yield of
2.7 MT/ha vs. Average
non-RSPO palm oil yieldof 2.4 MT/ha

Certification Trends

Certification Trends

Limiting Climate Change

CSPO is associatedwith a lower level of
GHG emissions vs.
conventional palm oil
and other vegetableoils (e.g., soybean,rapeseed)
Emissions Management- Mitigation

Transforming Markets

CSPO supply reaches
new milestone at 15.4
million MT; +4.8%
growth or 706,900 MT
increase in production
year-on-year

Certified Supply

Transforming Markets

Transforming Markets

Acting Responsibly

CSPO consumption
reaches 9.2 million
MT; +7.4% growth or
633,391 MT increase indownstream usage yearon-year

56% of applicable
P&T, CGM and Retailer
members met their 2022
CSPO SR uptake targets(+2% from 2021)

Average of 263
working days to close
RSPO Complaints
post-Complaints andAppeals Procedures
implementation in 2017.

Certified Consumption

Shared Responsibility

Grievance

Impact Update 2023

9

RESPECTINGHUMAN RIGHTS
Workers and communities are integral rights holders within the oil palm industry.
The RSPO Principles and Criteria (P&C) 2018 recognises the crucial role of thelabour force and acknowledges the rights of communities over land and resources
to ensure their sustained livelihood as an indispensable criteria for the sustainableproduction of palm oil.
Principle 4 (Respect Community and Human Rights and Deliver Benefits) of the
P&C 2018 requires RSPO Certification to recognise and respect community rights
and ensure remediation, where needed. Principle 6 (Respect Workers’ Rights andConditions) obliges RSPO Certified estates and mills to ensure equal opportunities
for each and every worker to fulfill their potential with dignity, in safety, andfree from discrimination within a decent working and living environment. These
requirements provide the foundation for RSPO to ensure that every pair of hands
involved in the production of RSPO Certified Sustainable Palm Oil is given the
due respect, fair employment, clear information, honest representation, andequitable prospects they deserve.

10

Impact Update 2023

Labour Index
PEOPLEPROSPERITY

Using an almost complete set of 479 RSPO Principles and Criteria (P&C) Metrics Templates1 provides amore accurate assessment on selected labour aspects of RSPO Certification (Figure 1). Globally, almost
550,000 workers are employed by certified units, with over 300,000 in Indonesia alone. Employment
demographics vary: Malaysia has the highest proportion of non-local workers due to a reliance on foreignlabour, while Indonesia and other regions mainly draw from local labour markets2.
Certified Palm Oil Mills
2022

Demographics
Total number ofmill workers

Demographics andEmployment
Non-locals as apercentage of total
mill workers
Training
Non-management
workers trained
as a percentage
of total nonmanagement mill
workers
Internal GrievanceOpen cases as apercentage of allcases received at
year-end

Indonesia

31,200

Malaysia

13,354Latin America

10,438Africa3,426

2022(change vs. 2021)

Certified Oil Palm Estates
2022(change vs. 2021)

2022
275,555

61,795(+6,795)

87,34050,90642,317

ROW

3,377

26,123

Indonesia

10.6%

15.4%

Malaysia

27.9%

Latin America

6.7%

Africa2.9%

13.0%(-2.7%)

76.1%
7.3%
3.2%

ROW

4.9%

1.7%

Indonesia

81.7%

64.7%

Malaysia

84.2%

Latin America

61.2%

Africa

92.3%

ROW

91.9%

99.1%

Indonesia

4.2%

9.6%

Malaysia

4.9%

Latin America

1.5%

Africa

36.7%

ROW

23.5%

80.2%
(+0.8%)

4.7%(-4.1%)

91.7%
72.0%
76.4%

5.4%
29.6%
17.9%

482,241(+37,241)23.7%(-4.3%)

73.3%(-14.5%)

8.6%(+6.1%)

17.5%

Figure 1: Labour-related statistics of RSPO Certified Units

Crude palm oil output from the same dataset shows the relative labour intensity of production. In
Malaysia, one worker in a certified unit is, on average, linked to 51.8 MT of CSPO produced. ROW follows
at 45.2 MT per worker, with Indonesia and Latin America at 38.5 and 38.4 MT, respectively. Africa is themost labour intensive region, at 13.0 MT per worker. These statistics are relevant, as labour intensity
levels are linked to RSPO’s ability to positively impact jobs and lives, but may increase risks and costs.
Other principles within the RSPO P&C 2018 also look at labour aspects. Principle 3 includes criteria
requiring certified units to offer equal access to training on applicable subjects, including RSPO. In 2022,
80.2% of non-management workers in mills and 73.3% of field workers in estates were trained at least
once. Criteria 4.2 under Principle 4 requires a documented and mutually agreed system for addressing
complaints and grievances. Over 90% of certified estates and mills have formal internal grievancesystems. The number of open complaints in mills declined by 4.1% in 2022, but increased by 6.1% inestates. We observe that a small number of certified units are associated with a relatively high level ofopen cases. The RSPO Secretariat will work with such units to better understand their situation.

Introduced in May 2021 as a prerequisite to become certified under the RSPO Principles and Criteria (P&C) 2018, verified by auditors. The
reference set of Metrics Templates for 2022 represents 97% of current P&C certified units [a palm oil mill(s) and its supply base(s)]. The
reference set for 2021 consisted of 206 Metrics Templates, or 44% of then certified units.
2
In Indonesia, non-local workers include transmigrants – inter-province resettlement under the transmigrasi initiative to move people fromdensely-populated areas (Java) to less populous areas (e.g., Kalimantan, Sumatra, Papua).
1

Impact Update 2023

11

Gender Index
PEOPLEPROSPERITY

Gender issues are addressed in the P&C 2018 through several criteria under Principles 4, 6 and 7, ensuring
no discrimination, no harassment, recognition of reproductive rights and removal of environmental risks
to expectant mothers, linked to child mortality.
Certified Palm Oil Mills
2022
Participation andInclusion
Female workers
as a percentage of
total workers

Indonesia
Malaysia
Latin America
Africa
ROW

5.0%
11.5%
12.2%
6.7%
8.8%

Equal Access
Female:Male ratioof workers trained

Indonesia
Malaysia
Latin America
Africa
ROW

1:1
2:1
0.7:1
1:1
1:1

Empowerment
A percentage of
total management/
administrative roles asa percentage of total
management roles

Indonesia
Malaysia
Latin America
Africa
ROW

9.0%
17.2%
16.5%
11.4%
15.9%

2022
(change vs. 2021)

7.9%(+0.4%)

2:1
(=)

13.3%
(+2.2%)

Certified Oil Palm Estates
2022
25.6%
20.6%
11.1%
29.1%
27.8%
1:1
1:1
0.7:1
0.8:1
1.5:1
19.1%
29.2%
20.8%
26.9%
24.1%

2022
(change vs. 2021)

25.4%(+4.4%)

1:1
(=)

23.3%
(-0.9%)

Figure 1: Gender Aspects of RSPO Certified Units (2022)

From Metrics Template data (Figure 1), there is a noticeably high proportion (25.4%) of female workforce
participation in certified estates globally, with Africa having the highest at 29.1%. In certified mills, women
form 7.9% of the workforce. Once employed, women and men receive equal training, proportionally1.
The proportion of women in management and administrative roles at mills and estates is 13.3% and23.3%, respectively. In combination, this indicates a considerable level of gender equity within RSPO
Certification2.

Human Rights Risk
PEOPLEPROSPERITY

The P&C 2018 addresses human rights and social impacts in Principles 4 and 6, including issues such as
labour rights, gender parity, no child labour, no forced or trafficked labour, Human Rights Defenders,Free, Prior and Informed Consent (FPIC) of land owners and affected communities including customary
rights over land of Indigenous People. The standard also emphasises a key component of human rights
practice – access to remedy through establishing an internal grievance mechanism.
The RSPO Complaints System provides an indication of potential violations through the lens of risk. To
date, 67% of 183 complaints3 involved human rights-related allegations (FPIC/Land, Labour, Human
Rights/Gender), forming the majority of all complaints in Indonesia, Malaysia, Africa and Latin America.
The highest risk is on FPIC/Land issues (as high as 67% of related cases in Africa), however it must be
noted that Labour and Human Rights/Gender risks are also present4. Complaints are investigated by the
RSPO Complaints Panel, with 81% of related cases closed, from 78% in 2021.
The data is also derived from the total number of trainings conducted, including individuals attending multiple trainings. Situationally,
women in mills tend to work in office roles with a broader spectrum of training requirements.
2
Additional analysis and research is required to establish if levels of gender equity within RSPO Certification is statistically or significantly
different from the wider palm oil industry.
3
A complaint is accepted if the allegations, if proven to be true, amount to a breach of the RSPO Key Documents which includes, but notlimited to, the RSPO Principles and Criteria (P&C), Code of Conduct and Membership Rules.
4
Complaint cases are catalogued by category, and specific cases may be linked to multiple categories.
1

12

Impact Update 2023

Impact Update 2023

13

INCLUDING
SMALLHOLDERS
The first SDG in the United Nations Sustainable Development Goals targets the
alleviation of poverty in all forms and enshrines security of land rights. Theseissues are especially relevant to smallholders, a production demographic which
RSPO recognises as a critical section of the palm oil supply chain requiring
technical assistance, financial support and market access. There are also broader
socio-economic aspects - research in Jambi, Indonesia indicates smallholder
oil palm cultivation also confers long-term benefit beyond just income, in the
nutrition, health and education of families1.
Oil palm smallholders are contextualised into two forms - scheme smallholders
who work in fixed contractual partnership with a single mill and independent
smallholders (ISH) who retain operational independence and may supply tomultiple palm oil mills. Globally, smallholders - especially ISH - tend to have lower
yields and lesser awareness of sustainability issues, and are also particularly
vulnerable to market shifts, being the furthest away from key trading decisions
in the supply chain. For smallholders, RSPO Certification can have far-reachingpositive impacts, explored in this chapter.
14

Impact Update 2023

Smallholder Participation
PEOPLE

PLANETPROSPERITYRSPO estimates that there are at least 7 million smallholder farmers worldwide who earn a living (fullyor partially) from oil palm cultivation. These farmers can participate in RSPO Certification in two ways:
scheme smallholders supported directly by certified mills through the RSPO Principles and Criteria (P&C)
2018 Standard, or independent smallholders (ISH) certified under the RSPO ISH Standard 2019, which
adapts and simplifies the P&C 2018 specifically to include more smallholders.
The pathway to certification, however, can be a lengthy one. RSPO has two procedures in place to assist
ISH prior to membership or certification: the RSPO Smallholder Support Fund (RSSF) and the Smallholder
Training Academy (STA).
In 2022, RSPO approved 15 new RSSF2 projects with US$180,000 of funding benefitting an additional
5,606 ISH in Indonesia (Figure 1). From this pool of RSSF projects, 6 new ISH groups joined RSPO as
members in 20223. Within the existing 36 certified RSSF-supported ISH groups, there is striking progress:
new farmers joined (+21%), certified areas expanded (+19%) and land yields improved to produce more
FFB (+46%). The gain in productivity levels does not appear to be solely linked to numeric growth infarmers or area: the Ngoyaï Gbaayegie Group in Sierra Leone reported a 34% increase in Fresh Fruit
Bunches (FFB) output from a consistent level of farmers and area.
RSSF Funding (US$)

2013-2022
Change vs 2021

ISH Groups in RSPOApproved

Disbursed

Members

4,207,357

2,961,027+4.5%+12.6%RSSF
FundedBenefiting

Indonesia
Malaysia
Latin America
Africa
ROW

Area

FFB
Production

28,97984,544

1,571,799+6,962+18,941+583,930

66%

63%

59%

ISHs

177

83

+66

+20

36%

43%

RSSF
FundedISH Groups(change vs 2021)

ISH farmers
Total

RSPO ISH Certification

Certified

ISH Groups(change vs 2021)

44,203(81 Projects)

63
(+6)

36
(=)

18,995(+21%)

53,494(+19%)

922,545(+46%)

19,154(49 Projects)
748(3 Projects)
5,588(9 Projects)
14,519(6 Projects)
4,194(14 Projects)

32
(+6)
3
(=)
5
(=)
11
(=)
12
(=)

20
(=)
3
(=)
0
(=)
1
(=)
12
(=)

8,066
(+35%)
1,994(+51%)

18,991(+37%)
7,975(+28%)

408,087(+77%)
140,836(+56%)

4,983
(=)
3,952
(+16%)

8,667(=)
18,539(+14%)

16,777(+34%)
356,645(+19%)

Figure 1: RSSF funding as a pathway to ISH certification as of 31 Dec 2022

To assist the capacity building of potential and current ISH farmers and groups, RSPO launched the
RSPO STA in November 2019. Supported by RSPO Members and collaborating partners, STA provides
training modules for trainers to train smallholder group managers and individual smallholders acrossa range of sustainability topics, available in six languages (English, French, Indonesian, Malay, Spanish
and Thai). This unique ‘train-the-trainer’ approach aims to build a pool of Master Trainers across sectors
and organisations as a global community promoting sustainable palm oil practices through smallholder
training. In 2022, RSPO facilitated 21 new STA global training sessions that empowered 887 additional
ISH, bringing the overall STA reach to 200 training sessions benefitting 10,278 ISH.
Chrisendo, D., Siregar, H., & Qaim, M. (2022). Oil palm cultivation improves living standards and human capital formation in smallholder
farm households. World Development, 159, 106034. doi: 10.1016/j.worlddev.2022.106034
2
Initiated in 2013, RSSF provides monetary assistance to organised ISH groups pursuing certification to reduce cost implications under 3categories: Certification, Audit and Impact. It is funded by an annual allocation of 10% of revenue generated from CSPO trade, linking RSPO’s
ability to assist ISH to progress in downstream sustainable sourcing.
3
The parallel addition of new RSPO membership and certification from non RSSF-supported ISH groups led to a lessened representation of
RSSF-supported ISH groups within RSPO.
1

Impact Update 2023

15

Smallholder Certification
PEOPLE

PLANETPROSPERITY

Through 2022, RSPO Certification has included over 167,000 individual farmers in 14 countries as scheme
or independent smallholders (ISH). Collectively, RSPO smallholders operate an oil palm production areaof nearly 415,000 ha1, more than twice the oil palm area of Brazil2. An estimated 7.5 million MT ofcertified FFB was produced, potentially representing 2% of global palm oil production3.
The extent of certified ISH groups grew beyond Southeast Asia in 2021 to Africa (Sierra Leone), and in
2022, RSPO welcomed the first certified groups in Latin America (Mexico) and in Ghana. We also notethat there has been a notable deceleration in the pace of certifying scheme smallholders, primarily inIndonesia. The RSPO Secretariat will engage with identified certified mills to better understand scheme
smallholder certification trends to accelerate inclusion.
Certification Production Area(change vs 2021)
330,361 (-2%)
196,696 (-6%)
8,347 (+40%)
56,025 (-19%)
26,959 (+982%)
42,334 (-23%)
84,544 (+34%)
35,706 (+33%)
7,975 (+28%)
1,255 (-)
8,348 (-4%)
31,260 (+48%)
414,905 (+4%)

SchemeIndonesia
Malaysia
Latin America
AfricaROW
Independent
Indonesia
Malaysia
Latin America
AfricaROW
Total Smallholders

Certified FFB Production(change vs 2021)
5,926,761 (-19%)
3,689,541 (-29%)
0 (-)
1,318,824 (-3%)
247,710 (+705%)
670,686 (-8%)
1,571,799 (+34%)
718,159 (+39%)
140,836 (+25%)
5,280 (-)
22,939 (+47%)
684,585 (+29%)
7,498,560 (-11%)

No. of Farmers(change vs 2021)
138,488 (-3%)
114,937 (-4%)
44 (+47%)
1,453 (-1%)
4,887 (+444%)
17,167 (-3%)
28,979 (+34%)
15,485 (+41%)
1,994 (+51%)
117 (-)
5,116 (+3%)
6,267 (+45%)
167,467 (+1.5%)

Scheme only
ISH only
Scheme/ISH

Figure 1: Distribution of RSPO certified smallholders (scheme, ISH) and statistics

Certification is not the end but the start of a journey of continuous improvement, crucial to improvesmallholder livelihoods over the long run. Scheme smallholders receive sustained support from theirassociated certified mills and there are indications of this beneficial relationship: average FFB yields forcertified scheme smallholders globally increased from 13.3 MT/ha in 2018 to 14.4 MT/ha in 2022, withnotable gains in Colombia, Guatemala and Honduras.
Certified ISH groups have a similar yield globally at 14.9 MT/ha of FFB, though this average masks
significant country-level variations – below 3.0 MT/ha in recently-certified groups from Latin Americaand Africa. The highest ISH yields (17.5 MT/ha) are in Thailand, in part due to the strong symbiotic
relationship between ISH and certified independent palm oil mills. Constant, continuous support fromRSPO Members across the supply chain through preferential sourcing, or direct market mechanisms like
RSPO Independent Smallholder (IS-)Credits, is broadly linked to higher yields over time. In 2022, 197,767
volumes of IS-Credits worth US$5.5 million were bought by downstream RSPO Members to directly
benefit certified ISH, up from 167,021 volumes of IS-Credits worth US$3.8 million in 2021.
The Impact Report 2022 incorrectly reported total certified area as total production area of scheme and ISH. Total certified area includes
the total production area, and any areas of immature plantings, conservation or infrastructure.
2
The area harvested for palm oil fruit in Brazil is estimated at 197,165 ha (Source: FAOStat).
3
Total palm oil production in 2022 = 77.6 million MT (USDA); potential ISH palm oil output calculated using a lower yield (16%) than the
average RSPO Oil Extraction Rate (OER, 20%).
1

16Impact Update 2023

Impact Update 2023

17

PROTECTING ANDRESTORING NATURE
The extent of cultivation of oil palm spans the equatorial belt where some of theworld’s most biodiverse ecosystems are found, as well as where some 3 billion
people reside and rely on economic growth to alleviate poverty. RSPO wasfounded to protect these valuable environments in balance with sustainable
development. Our standards, systems and procedures aim to eliminate
deforestation risk and mandate reforestation, afforestation, environmental
restoration and ecosystem rehabilitation. The intended impact is to protect
and enhance valuable forests and crucial natural environments, for the people
whose lives and livelihoods depend on these areas, and the species there foundnowhere else on Earth.

FIRE RISK
After three consecutive La Niña weather cycles from 2020 to 2022 (a ‘triple dip’
La Niña), an El Niño has developed. This climate sequence is unprecedented.
A La Niña brings wet weather to Asia’s Pacific rim and dry conditions to theAmericas, causing deluge or drought. An El Niño flips these conditions: causing
fire risks in Southeast Asia and flooding risks in Latin America. A super El Niño –an extreme recurrence every 15-20 years1– may be on the horizon, potentiallyleading to destructive tropical forest fires that raze jungles and degrade land,causing pollution and transboundary haze. To curb fire risk, RSPO has had a zerotolerance approach to the use of fire since 2005. Current criteria in the P&C
2018 and guidance in RSPO Best Management Practices (BMPs) are intended
to prevent fires, or at the very least contain them if they occur, to minimise thedamage on the environment, health and economy. Remote sensing tools aid inthese efforts in order to prevent a spark from turning into a blaze.

18

Impact Update 2023

Safeguarding Nature
PEOPLE

PLANETRSPO Certification requires forests or areas of High Conservation Value (HCV) and High Carbon Stock(HCS) to be protected. Through 2022, RSPO Members have set aside and managed 362,657 ha of areas
assessed as necessary for conservation, 15 times the size of Kuala Lumpur2. Distribution is across 21
countries (Figure 1), with the largest extent in Indonesia (150,053 ha), Gabon (74,109 ha), Brazil (63,224ha), Malaysia (22,296 ha) and Colombia (11,339 ha).
Deforestation risk is also addressed in pre-certification. The New Planting Procedure (NPP) applies to all
new land development from the point of RSPO membership, segueing into P&C certification. Since 2015,
427,967 ha of NPP proposals have been submitted; 252,417 ha were approved for development and
96,577 ha have been conserved for environmental or social importance (HCV and HCS).
2 ha

60,000 ha

120,000 ha

HCV Area by Country

Figure 1: Distribution of RSPO conservation area by country in hectares (2022)

Water Stewardship
PEOPLE

PLANET

Water is crucial in palm oil, as a production input and as an affected resource. To be exemplary water
stewards, RSPO Members are required by the P&C 2018 to have comprehensive water management
plans for their catchment and treat Palm Oil Mill Effluent (POME), as wastewater impacts issues such asavailability of clean water, freshwater ecosystem health and greenhouse gas emissions.
Indonesia

Malaysia

Latin America

AfricaROW

Global Average

Freshwater Usage per CSPO produced(m3/MT)

4.95

5.63

6.61

5.47

1.67

5.02

Freshwater Usage per CSPO produced(m3/kg)

0.005

0.006

0.007

0.005

0.002

0.005

Figure 1: Estimated freshwater usage per MT/kg of CSPO produced (2022)

In 2022, average freshwater use was 5.02 cubic metres (m³) per MT of CSPO (Figure 1). Regional usage
is similar, with the highest in Africa. As a fixed input, water footprints of certified mills are unlikely to bevery different from conventional mills, but water sources may differ. Comparatively, abundant rainfall
makes oil palm a less “thirsty” crop than soy or rapeseed. The P&C 2018 also covers riparian zones(fragile lands along rivers and streams) where development could adversely affect soil and water quality.
Some 46,976 ha of riparian buffer zones have been set aside for protection within RSPO Certification.

The two most recent occurrences of a super El Niño were in 1997/98 and 2015/16, causing widespread persistent forest fires and hazardous
air pollution conditions in Southeast Asia, and severe disruptive rainfall in Latin America.
2
The Federal Territory of Kuala Lumpur in Malaysia is 23,400 ha in size.
1

Impact Update 2023

19

Environmental Sustainability Index
PEOPLE

PLANET

Environmental sustainability covers a range of operational practices to reduce land degradation, protect
human health, and address climate change. Our current dataset is limited to pesticide use, with a more
representative baseline established. Monitoring for other aspects is being developed. In the RSPO
Complaints System, 83% of 66 environment-related cases have been closed, from 79% in 2021.
Indonesia

Malaysia

Latin America

AfricaROW

Global Average

Prophylactic Use of Pesticides

1.2%

4.4%

3.3%

4.8%

0.0%

2.5%

WHO 1A or 1B or Stockholm/Rotterdam
Convention pesticides, or paraquat

9.0%

4.4%

1.6%

14.3%

2.0%

6.9%

Figure 1: Pesticide usage in a sampling of RSPO certified units (2022)

In 2022, prophylactic pesticide usage to control disease occurred in only 2.5% of certified units, while
restricted herbicides (paraquat) or pesticides to control outbreaks occurred in 6.9% (Figure 1). Usage wasnoted by auditors to be supported by due diligence, agronomist advice or government authorisation,in line with P&C Criteria 7.1. Some units also noted that such restricted practices had already been
eliminated for Integrated Pest Management in preparation for RSPO Certification.

Fire Risk
PEOPLE

PLANETPROSPERITYRSPO monitors global hotspots daily in RSPO Member concessions (certified and non-certified)1. Hotspots
detected in, or near, an RSPO concession triggers a Hotspot Alert to members to verify potential fire forfurther action.
Monitoring data shows a consistent distinction in fire risk between RSPO and non-RSPO oil palm
concessions2 (Figure 1). In 2022, the probability of hotspots in non-RSPO concessions was at least 12.1%
compared to 1.2% in RSPO concessions. Additionally, concessions on peat show an even more striking
difference – at least 3.9% and 0.08%, respectively. Of RSPO hotspots detected, 28% were in-concession
fires (down from 51% in 2021), the most common cause being spread from off-concession burning
by local communities (65%). Of the remaining RSPO hotspots, 15% were false alarms, 28% were offconcession fires and 39% were inconclusive.
The 2023 El Niño phenomenon has already dramatically increased hotspots (+378% from January to
September 2023). Monitoring, however, indicates that the probability of RSPO hotspots has actually
declined considerably, inferring that RSPO Certification and membership does reduce a significant
degree of fire risk.
2021
Total Hotspots Detected2022 Change 2021

85,471 67,922 -20.5% 100%
Of which

2022 Change
100%-

Probability of occurrence

RSPO Hotspots (RSPO member concession, certified and non-certified)

1,216

Non-RSPO Hotspots² (known non-RSPO concessions)

10,107 8,208 -18.8% 11.8% 12.1% +0.3%

847-30.3%RSPO Peat Hotspots (RSPO member concession, certified and non-certified, on peat)

98

51

Non-RSPO Peat Hotspots² (known non-RSPO concessions, on peat)

3,579

2,647 -26.0%

1.4%

1.2%

-0.2%

-47.9% 0.10% 0.08% -0.02%
4.2%

3.9%

-0.3%

Figure 1: Fire Hotspots in RSPO and non-RSPO concessions in Indonesia and Malaysia (2022, 2021)

Remote sensing tools include NASA Fire Information for Resource Management System and Global Forest Watch Pro.
Based on known non-RSPO oil palm concession data available in geospatial platforms. The data library for Malaysia is largely incomplete,
leading to under-counting. Hotspots detected in non-RSPO concessions represent the minimum level of occurrence, with the exact degreeof unaccounted discrepancy undetermined.
1

2

20

Impact Update 2023

Remediation
PEOPLE

PLANETThe Remediation and Compensation Procedure (RaCP) was adopted in 2015 to provide RSPO Memberswith an avenue to address past deforestation as responsible growers. Based on submitted disclosuresof historical land clearance without prior environmental or social assessment since November 2005,
potential non-compliant land clearing is identified and Land Use Change Analysis (LUCA) is conducted toassess any liabilities incurred. If liability is established, onsite, offsite or in-kind remedies making up forthe loss of conservation areas or negative social impacts is required as a prerequisite for P&C Certification.

N/A
53%

Disclosures Received
Total: 2,922
Ongoing
LUCA required
8%

39%

LUCA
Total: 1,121
Ongoing
Non-Compliance
41%

59%

Concept Note
Total: 593
Endorsed
Ongoing

Remediation Plan
Total: 65
Approved
Ongoing
15%

36%

85%

64%

Compensation Plan
Total: 382
Ongoing
Approved
19%

81%

Figure 1: RaCP case progress/completion at each step of RaCP process (as of Dec 2022)

As of 31 December 2022, RSPO has received 2,922 disclosures from existing members, new applicantsand group consolidation (Figure 1). Some 53% of disclosures did not involve non-compliance. Of theremaining 47%, 1,121 cases with potential non-compliance have proceeded to LUCA.
Completed LUCA assessments identified 658 cases requiring a Remediation Plan or Concept Note
proposals for a Compensation Plan1, depending on the nature of non-compliance. The extent of noncompliant land clearance is 706,295 ha out of a total oil palm area of 2.8 million ha across 24 countries.
Excluding converted agro-forestry or degraded areas where development is permitted, deforestation ofconservation areas incurred at least 163,747 ha in identified liabilities. Concept Notes for 382 cases havebeen endorsed and Compensation Plans for 311 cases approved, remediating 101,176 ha or an area
almost the size of Hong Kong.
RaCP progress has improved with additional resources at the RSPO Secretariat. Post-2021, the average
turnaround time to complete LUCA is 113 days (from 598 pre-2021), to endorse Concept Notes, 140days (from 195) and to approve Compensation Plans, 101 days (from 297). Almost 87% of case closures
were achieved between 2019 and 2022, and this operational efficiency is linked to 26 of the 44 new P&C
certifications in 2022. We also note that incoming disclosures currently outpace case closures, indicating
continued interest in pursuing RSPO Certification.
Remediation Plans where only environmental remediation is required due to clearing of prohibited areas (e.g., peat, steep slopes), withno conservation or social liabilities. Compensation Plans where conservation or social liabilities due to clearing of conservation areas(HCV) is determined through LUCA, calculated as Final Compensation Liability (FCL). Cases requiring Compensation Plans may also include
environmental remediation.
1

Impact Update 2023

21

LIMITING CLIMATECHANGEAs with most agricultural activities, oil palm cultivation and palm oil production
is both a cause and a casualty of climate change. It is thus crucial to ensure
the adaptation of production systems and the reduction of greenhouse gas(GHG) emissions to address the challenges that emerge with the planet’s risingtemperatures.
RSPO approaches the climate change topic comprehensively. There are multiple
components within our standards, systems and procedures that target thedifferent aspects of limiting climate change. To avoid potential emissions, RSPO
requires members with oil palm estate operations to identify, assess and estimate
carbon stocks thoroughly prior to any new development. To sequester carbon,
RSPO prohibits planting on tropical peatlands and requires remediation forhistorical deforestation. To reduce the risk of accidental emissions, RSPO hasa zero tolerance approach to the use of fire, and remotely monitors hotspots
daily for precautionary action. To mitigate operational emissions, we work withcertified estates and mills to calculate their emissions risk profiles using thePalmGHG calculator, identifying opportunities and implementing plans to lower
emissions levels.
22

Impact Update 2023

Emissions Management - Avoidance
PEOPLE

PLANETPROSPERITY

Any change in land usage releases carbon. This is especially so when the land use change involves
conversion of pristine forests or landscapes. RSPO’s Standards, systems and procedures aim to maximiseemissions avoided by prohibiting land use change of valuable environments, while allowing development
in areas, where appropriate, to support economic development. This includes mandatory environmental
assessments, conservation requirements and protection criteria (e.g., peatlands, fire) within the P&C
2018 Standard and the New Planting Procedure (NPP).
Since 2015 (Figure 1), RSPO requirements have collectively avoided the release of a cumulative
2.2 million MT of CO2 equivalent per year (tCO2e/year). This corresponds to the annual emissions of
444,444 passenger cars – almost the size of Cambodia’s total registered road motor vehicle fleet.1 But
what if RSPO did not exist? Our analysis suggests that the absence of RSPO or non-compliance of RSPO
requirements could result in a worst case scenario of 404,740 tCO2e/year released in total from areas
currently conserved and protected through RSPO Certification.
Sequestration (Conservation)

Land use

Peat emissions

2022
2021
2020
2019
2018
2017
2016
2015
0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Figure 1: Cumulative GHG emissions avoided through RSPO procedures for new development

Emissions Management - Mitigation
PEOPLE

PLANETPROSPERITY

Day-to-day operations in estates and mills involve some release of emissions. While unavoidable,
the level of such operational emissions can be mitigated. From ACOP 2022 reporting, the three main
operational sources of emissions identified by RSPO members are Palm Oil Mill Effluent (POME), fertiliser
application and land use change. Other sources include existing cultivation on peatlands, fossil fuels, andgrid electricity utilisation.
The RSPO PalmGHG v4 calculator allows more detailed analysis for further mitigation, by building anemissions risk profile for each certified unit. Analysis of PalmGHG results for 206 RSPO Certified units
shows a median emissions profile of 1.6 tCO2e/MT. Referencing available scientific research1, while
acknowledging methodological differences, this level is considerably lower than emissions associatedwith non-certified palm oil, or other notable vegetable oils replanted annually such as soy or sunflower.
However, there are also large outliers in either direction in PalmGHG profiles. The main swing factor
is POME, with PalmGHG formulae evaluating that advanced POME treatment (e.g., biogas capture)significantly lowers emissions risk. Monitoring the risks of POME and other emissions sources throughPalmGHG allows RSPO certified units to consider business decisions to mitigate key climate change risks
and reduce them.
Cambodia = 456,000 registered road motor vehicles (2020). Source: ASEANstats, ASEAN.
Schmidt, J., & De Rosa, M. (2020), Certified palm oil reduces greenhouse gas emissions compared to non-certified, Journal Of Cleaner
Production, doi: 10.1016/j.jclepro.2020.124045; Alcock, T., Salt, D., Wilson, P., & Ramsden, S. (2022) More sustainable vegetable oil: Balancing
productivity with carbon storage opportunities, Science of The Total Environment, https://doi.org/10.1016/j.scitotenv.2022.154539; Schmidt,
J. (2015), Life cycle assessment of five vegetable oils, Journal Of Cleaner Production, doi: 10.1016/j.jclepro.2014.10.011.
1

2

Impact Update 2023

23

ADVANCING
CERTIFICATIONThe RSPO’s three certification standards (RSPO Principles and Criteria, RSPO
Independent Smallholder Standard for upstream production, and RSPO Supply
Chain Certification Standard for downstream chain of custody) cover the entire
sustainability journey of palm oil, ensuring traceability and providing assurance
that RSPO Certified palm oil, and its many fractions and derivatives, is sustainable.
Continued advancement and growth in the reach and extent of RSPO Certificationshows an established acceptance of RSPO Certification by the industry at large.
This growth is more than just a series of rising numbers; the scale of RSPO
Certification directly drives our ability to create and perpetuate positive impacts
worldwide. It is also a means to enforce the RSPO Principles and Criteria andfulfill the standard’s various social, environmental and ethical ambitions. Froma foundation of strong certification and credible assurance, we can also initiate
new approaches to certification or verification, and explore the use of technology
to improve traceability across the supply chain to meet evolving expectations ofsustainability.

24

Impact Update 2023

Certification Trends
PEOPLE

PLANETPROSPERITY

Reach of Certification
Globally, the certified area under the RSPO Principles and Criteria (P&C) 2018 Standard reached 4.9
million ha as of December 2022 (Figure 1), spanning five continents and 23 countries. Indonesia andMalaysia continue to account for most of this hectarage (almost 80%), while we observe significant
growth in Africa, where certification has expanded to the West African island nation of São Tomé andPrincipe.
Indonesia

Malaysia

Latin America

AfricaROW

2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

2009

2013

2017

2020

2021

2022

Figure 1: Evolution of RSPO Certified area by country or region

Of the 4.9 million ha of certified area, 3.6 million ha is classified as production area1. Fresh Fruit Bunches(FFB) grown and harvested sustainably from such areas are delivered to 493 RSPO Certified mills to
produce Certified Sustainable Palm Oil (CSPO). RSPO Certified mills represent 23.2% of the 2,128 known
palm oil mills (Figure 2) tracked by the Universal Mill List2. In 2022, growth in mills receiving their firstever RSPO P&C certification was driven by Indonesia (+25 mills). We also note that the number ofcertified mills in Africa almost doubled (+10 new mills), and growth is still quite broad-based with Latin
America and Malaysia adding 6 and 1 new P&C certifications respectively.
500
400
300
200
100
0

2009

2013

2017

2020

2021

2022

Figure 2: Evolution of RSPO Certified mills (global)

The difference between certified and production area is the hectarage dedicated to conservation and infrastructure (e.g., buildings such as
mills, offices, storage, or infrastructure such as roads, water treatment areas, etc.).
2
The Universal Mill List was launched in 2018, developed by the World Resources Institute (WRI), Rainforest Alliance, Proforest andDaemeter, with contributions from RSPO et. al.
1

Impact Update 2023

25

Traceability and Productivity
The number and extent of certified mills is important, as it illustrates the reach of RSPO Certification. The
type of traceability model the mills are certified under is equally as important.
Of the 493 certified mills in 2022 (Figure 3), 313 were Mass Balance (MB) certified and 159 were Identity
Preserved (IP) certified. A further 21 are dual IP-MB certified. Proportionally, MB certification is highest in
Africa, Indonesia and Malaysia, while IP is more common in Latin America and ROW. Since 2018, new MB
mills have outpaced new IP mills, seemingly a reflection of CSPO consumption growth driven by newer
markets where downstream IP or Segregated (SG) physical infrastructure is not yet widely available (seeCertified Consumption, pg 30). In 2022, the number of MB mills grew by 26, compared to +3 for IP mills.
Country

Certification Model

IndonesiaIP
50 (-5)MB
190 (+22)

IP,MB
11 (+0)Total
251 (+17)

Malaysia

56 (+2)

79

(-4)

1

(+1)

136 (+1)

Latin America

32 (+2)

21

(+0)

5

(+2)

58 (+4)Africa

4

(+3)

19

(+9)

1

(+0)

24 (+12)ROW

17 (+1)

4

(-1)

3

(-1)

24 (-1)Total

159 (+3)

313 (+26)

21 (+2)493 (+31)

Figure 3: Active certified mills by country/region and Supply Chain Model 3

Combining data on certified area and production (see Certified Supply, pg 29), RSPO can estimate
productivity levels associated with CSPO. In 2022, the average global CSPO yield was 4.5 MT/ha, marginallylower than 2021, due to labour-related production drags in Malaysia and progressive additions of new
P&C certificates over the year. The average global palm oil yield was 2.7 MT/ha, down slightly from 2021.
By inference, average yields for non-RSPO palm oil was 2.4 MT/ha4.
In comparison to other vegetable oil crops (Figure 4), palm oil - whether CSPO, non-RSPO or total - hasa high level of productivity and yield in terms of land use. Available data on global vegetable oil crop
harvested area and oil production, CSPO may be up to 6 times higher than the average yield of sunflower
oil, and could be up to 10 and 20 times higher than yields of soybean and coconut oil, respectively.
CSPO
Palm Oil
Non-RSPO Palm Oil
Sunﬂower Oil
Rapeseed Oil
Soybean Oil
Olive Oil
Coconut Oil
Ground Oil
Cottonseed Oil
Sesame Oil

4.50
2.70
2.40
0.74
0.72
0.46
0.26
0.23
0.15
0.13
0.07

0.00

1.00

2.00

3.00

4.00

Figure 4: Comparative average yields (MT/ha) of palm oil (RSPO, non-RSPO) and other vegetable oils

5.00
5The number of active P&C certified mills is a combination of the number of new mills (and associated supply bases) receiving their firstever certifications, and fluctuations in the existing base of certified mills. Such fluctuations can be caused by a number of factors, including
current status of P&C certification (e.g., suspensions, lapses or delays, extensions) or status of RSPO membership. Certified mills may also
initiate changes to their certification’s supply chain model - from MB to IP, or vice versa - as a business decision independent of RSPO rules.
4
RSPO yields calculated from RSPO Assurance data. Global yield calculated from RSPO estimates for total palm oil production (Source:
USDA, national sources) and total palm oil hectarage (estimated at 28,90,000 ha from the Food and Agriculture Organization of the United
Nations/FAOStat, national sources, industry bodies or available research studies). RSPO and global yield data for 2021 has been recalculated
for accuracy based on updated data sources.
5
Yields for other vegetable oils based on oil production and area harvested data from FAOStat using 2020 or 2021 data, the latest of whichis available.
3

26

Impact Update 2023

Extent of Certification
To ensure credibility of sustainability claims, the RSPO Supply Chain Certification (SCC) Standard is crucial
to ensure that what has been produced as sustainable is then traded, distributed, refined or processed
as sustainable along an often-complicated downstream supply chain, and presented to consumers astrustworthy. If a product containing CSPO is sold to a non-certified site, the traceability chain halts andproducts from that supply chain node onwards will no longer be certified or traceable.

8000

SCC Facilities

Trademark Licences

2021

2022

6000
4000
2000
0

2013

2017

2020

Figure 5: Evolution of RSPO SCC certified facilities and Trademark licences

The number of SCC certified facilities has seen significant and consistent growth, with the exception of a
COVID-19 related decline in 2020, rising from 612 sites in 2013 to 6,428 sites in 2022 (Figure 5).
As of 31 December 2022, a majority of SCC certified facilities (Figure 6) are located in Europe (52%),
with North America being the second-largest base (16%). This scale of SCC certification links to the highcertified consumption levels in both markets (see Certified Consumption, pg 30). Beyond Europe andNorth America, we note that SCC certification in other key downstream markets is also gaining pace:
China (+84 certified facilities from 2019), India (+41) and Indonesia (+50). We can also report encouraging
growth in the following markets: Japan (+57% in certified facilities since 2019), South Korea (+270%),
Taiwan (+133%), Thailand (+82%), Turkey (+29%) and Brazil (+74%).
0-50

SCC certiﬁed facilities
51-100101-500

501-1,000

Figure 6: Global distribution of RSPO SCC certified facilities

On consumer visibility of RSPO Certification, use of the RSPO Trademark has grown from 181 licences
covering 27 countries in 2013 to 2,143 licences covering over 100 countries and territories in 2022
(Figure 4), with usage for both general communications claims and on-pack labelling.
Impact Update 2023

27

TRANSFORMING
MARKETS
The standards, systems and procedures of the RSPO are intended to create amarket ecosystem for sustainable palm oil to thrive worldwide. We set credible
standards, establish rules, guide certification, convene stakeholders, and lead the
dialogue on sustainability issues. Our role is to facilitate and monitor this market
to better direct our outreach and development strategies.
Since 2008, when the first cargo of CSPO was shipped from Malaysia to
Rotterdam, the market for sustainable palm oil has grown significantly. In 2022,
20% of the world’s palm oil was produced under RSPO Certification. Certified
consumption has accelerated as well, led by Europe and North America. However,
due to different conditions, dynamics and velocities across regions, supply andconsumption may be misaligned. While RSPO does not directly intervene inmarkets, our role is to energise, encourage and extend our membership base– especially in key consuming regions – to ensure that the global market forsustainable palm oil remains balanced, relevant and transformative.

28

Impact Update 2023

Certified Supply
PEOPLE

PLANETPROSPERITY

After the disruptions of COVID-19 in 2020 and 2021, the supply context for palm oil and CSPO continued
to face challenges in 2022. A third consecutive La Niña climate pattern in the Pacific led to unseasonable
weather cycles. There were also other localised issues - labour shortages in Malaysia, and a shift inIndonesia’s palm oil export policies (an export ban was introduced in May 2022 which evolved into
controlled export quotas since June 2022).
Countries with P&C certiﬁcation

Countries with RSPO members operations not yet P&C certiﬁed
Potential CSPO

CSPO

Non-RSPO

18
.

17.8%

million MT%

million MT
7

2.

18.4

6 3.6

3.4

Malaysia

4%15.

Africa

8%

11.7%

9%

25

Latin America%

5.2

Rest of World

3.9

Indonesia
9%

46.7

million MT

3 0.

%

2 0.

6 0.1

%

million MT

2%

million MT
4 0.0

44.7%

19.
0

.1%

%
3.4

26.6%

3

Figure 1: Global distribution of CSPO, potential CSPO and palm oil production (2022) 1

In spite of this, CSPO supply in 2022 is estimatedto have grown by 4.8%, increasing by some
706,900 MT to 15.4 million MT in 2021 (Figure1). Growth in CSPO supply outpaced growthof total crude palm oil by 1.4%. Against global
production of 77.6 million MT in 2022, the CSPO
share of total palm oil supply is 20% (Figure2). Indonesia and Malaysia remain the largest
producers, collectively accounting for over 80%
of CSPO supply, while production is acceleratingin other regions. Two milestones were reachedin 2022: in Latin America, CSPO now representsa third of regional palm oil supply; and in Africa,
the CSPO share of regional supply is at double
digits for the first time.

CSPO
2009

3%

2013

12%

2017

14%

2020

19%

2021

19%

2022

20%

0%

Total PO

20%

40%

60%

80%

100%

Figure 2: Evolution of global CSPO and total palm oil production

CSPO actual production extrapolated from available audit data of certified mills and member Annual Communication of Progress (ACOP)
reports. Total palm oil production estimated from USDA Oilseeds: World Market and Trade reports.
1

Impact Update 2023

29

Certified Consumption
PEOPLE

PLANETPROSPERITY

There were major downstream market
disruptions in 2022. The invasion of Ukraine
caused geopolitical and economic shocks: oiland natural gas prices jumped, while limited
sunflower oil volumes altered global vegetableoils trade, causing food and energy inflation.
However, CSPO consumption has been resilient.
CSPO supply is sold under three options: RSPO,
other sustainability schemes, or as conventional.
Of the 15.4 million MT in CSPO supply (Figure 1),
49% was sold as RSPO Physical (MB, SG or IP) and
15% as RSPO Credits, totalling 9.7 million MT, up
8.1% from 2021. Sales under other schemes fell
to 16% from 19%, with conventional steady at
21%. Downstream, supply chain inefficiencies
reduced RSPO volumes used in consumer
products to 9.2 million MT, or 12.1% of global
palm oil consumption (75.4 million MT).

RSPO Physical CSPO
Other Schemes

RSPO Credits
Conventional

100%
21%

21%

25%

16%

16%

16%

15%

15%

49%

48%

45%

CSPO
Reﬁning/
Processing

CSPO Sales(from Mill)

CSPO
Production

80%
60%
100%

15%

40%
20%
0%

CSPO
Consumption

Figure 1: CSPO Supply/Consumption flow through the supply
chain (2022) 1

Distribution is tilted towards Europe and North America. Both regions represent a combined 53% of
CSPO consumption, with regional uptake near 90% levels (Figure 2). The multinational operations ofEuropean and North American RSPO members has also influenced the CSPO market in other regions. In
2022, consumption volumes increased in all regions except Europe. Malaysia is now at double-digit CSPO
uptake for the first time and Latin America shows impressive growth from 10% in 2020 to 18% in 2022.
Other notable markets are Australia and New Zealand (41%), Japan (27%), South Africa (17%), Mexico(15%), Singapore (14%) and Saudi Arabia (10%).
Europe (total palm oil)
Europe (excluding biofuels)

North America
Indonesia
India
Malaysia
China
Latin America

AfricaRest of the World

CSPO
Uptake- 2022CSPO
Uptake- 2021
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Figure 2: CSPO Uptake by key countries and regions (2022)

In CSPKO, we note that while certified kernel crushers increased supply by 9.8% in 2022, these additional
volumes were quickly absorbed through strong demand, maintaining high premiums. However, there aresigns that the tight CSPKO supply situation has begun to ease in 2023.

CSPO consumption extrapolated from RSPO PalmTrace traceability data and member’s Annual Communication of Progress (ACOP) reports.
CSPO consumption includes volumes used by Consumer Goods Manufacturers, Retailers and Processors operating in animal feed, biofuels
and power generation.
130

Impact Update 2023

Shared Responsibility
PEOPLE

PLANETPROSPERITY

Shared Responsibility (SR) is a framework forcollective responsibility to achieve RSPO’s vision
to make palm oil sustainable. The framework
applies to Ordinary, non-grower members andthe requirements covers four thematic areas:
Transparency & Legality, Social, Environmental
and Resourcing.

Shared Responsibility Uptake Targets

To drive CSPO consumption, SR requirements
include annual uptake targets for members in thedownstream palm oil supply chain (Processors
and Traders, Consumer Goods Manufacturers,
Retailers). Analysis of SR targets for 2022 (Figure1) shows similar trends to 2021, although the
major downstream market disruptions affecting
supply chains should be noted (see Certified
Consumption, pg 30). Retailers continued toperform well, with 70% meeting their targets.
Performance was more broadly mixed in othersectors: 62% of Consumer Goods Manufacturers
met targets (up from 59% in 2021), while 47%
of Processors and/or Traders did (up from 41%
in 2021). Several members specifically noted
increased CSPO sourcing to meet SR targets
in their ACOP 2022 reports, linking Shared
Responsibility (at least in part) to the 8.1% or
725,000 MT rise in CSPO sold from mills torefineries for 2022.

Category

In April 2023, the Shared Responsibility
Scorecard was launched on the RSPO website asa public portal of overall SR performance. RSPO
Members to whom SR applies are assessed on
the SR requirements under four thematic areas
and CSPO uptake target, if applicable. Scores
range between 0 and 10 as an indication of wheresuch members are in their sustainable palm oil
journey. The SR Scorecard is updated annually,
with the latest scores reflecting SR performancefor 2022 based on ACOP 2022 data. Averagescores by sector (Figure 2) indicate considerable
progress made in collective SR performance, butalso significant room for improvement.

Year

P&T

CGM and RT

2021

2%

15%

2022

2%

12%

Uptake Target Performance Category
Definition

Target met

Member met the annual uptake target OR
Member increased CSPO uptake to 100%

Did not meettargetMember did not meet the annual uptake
target>95% uptake

Member with >95% CSPO uptake but did
not meet uptake target

Did not
submit ACOP

Uptake performance is unknown as
member did not report ACOP

800

Number of members

700
600
500
400
300
200
100
0

P&T P&T
2021 2022

CGM CGM
2021 2022

RT
RT
2021 2022

Figure 1: Shared Responsibility CSPO uptake target performance(2022 vs 2021)

Average SR score(2022)1

RSPO Membership Sector
Palm Oil Processors and/or Traders

1.62

Consumer Goods Manufacturers

2.07

Retailers

3.62

Banks and Investors

4.23

Environmental or Nature NGOs

3.55

Social or Development NGOs

2.66

Figure 2: Average Shared Responsibility scores by membershipsectorThe Shared Responsibility Scorecard methodology for 2022 was revised to account for and include SR requirements that are part of theoriginal SR Framework adopted in October 2019, but not included in the SR Scorecard methodology for 2021 due to phased implementation.
This revision in methodology accounts for the shift in average SR scores for the Processor and/or Traders, Consumer Goods Manufacturers
and Retailer membership sectors.
1

Impact Update 2023

31

APPENDIX BASE DATA ANDGLOSSARY
Base Data
Current and historical base data is available in the supplementary data file that
accompanies the Impact Update 2023. Unless otherwise stated, all base data isrepresentative of a calendar year (1 January to 31 December).

32

Impact Update 2023

Glossary
Affiliate Members: RSPO Membership category
consisting of organisations that are not directly
involved in the palm oil supply chain, but haveexpressed interest in RSPO’s objectives andactivities. Membership extends to academia,
research and development organisations, donors
and sponsors. Affiliate members may attend theannual General Assembly as observers.
Annual Communication of Progress (ACOP):
Reports submitted by RSPO Members to gauge
progress towards producing, processing,consuming or supporting 100% RSPO Certified
Sustainable Palm Oil. Reporting is mandatory
for Ordinary and Affiliate members, and aresubmitted each year.
Best Management Practices (BMPs): Practicalguidelines to enhance oil palm management.
Certification Body (CB): Organisation thatprovides third party auditing and certification
services related to a product, process or system,
and which can issue a certificate of compliance.
Certified Sustainable Palm Kernel Expeller(CSPKE): Palm kernel expeller produced by
RSPO Supply Chain Certified kernel crushers
from palm kernels derived from FFB grown on aplantation that has been managed and certified
in accordance with the RSPO Principles andCriteria.
Certified Sustainable Palm Kernel Oil (CSPKO):
Palm kernel oil produced by RSPO Supply Chain
Certified kernel crushers from palm kernels
derived from FFB grown on a plantation that has
been managed and certified in accordance with
the RSPO Principles and Criteria.
Certified Sustainable Palm Oil (CSPO): Palm oil
derived from FFB grown on a plantation that has
been managed and certified in accordance with
the RSPO Principles and Criteria.
Crude palm oil (CPO): A type of vegetable oil
obtained from the fruit of the oil palm.
Dispute Settlement Facility (DSF): The Dispute
Settlement Facility is a part of the RSPO
Complaints System and offers complainants,
RSPO Members, and relevant stakeholders
involved in an active social or environmental
related complaint, the opportunity to resolvethese matters through mutually agreed terms,
with the help of DSF Mediation.
Final conservation liability (FCL): Compensation
liabilities as a result of clearance without prior
HCV assessment since November 2005 under
the Remediation and Compensation procedure.
FCL is expressed in hectares.
Free, Prior and Informed Consent (FPIC): A
principle that a community has the right to giveor withhold its consent to proposed projects
that may affect the lands they customarily own,
occupy or otherwise use.

Fresh Fruit Bunches (FFB): Fruit bunches
harvested from oil palms. Each bunch can weighfrom 5 to 50 kilogrammes and can contain 1,500
or more individual fruits.
Greenhouse gas (GHG): Term for gases which
trap heat within the atmosphere. The primary
greenhouse gases are water vapour, carbon
dioxide, methane, nitrous oxide, and ozone.
Hectares (ha): A unit of measurement equivalent
to 10,000 square metres, or 100m x 100m.
High Conservation Value (HCV) forest: Forestsof outstanding and critical importance due
to environmental, socio-economic, cultural,
biodiversity and landscape value, first developedby the Forest Stewardship Council (FSC) in 1999.
High Carbon Stock (HCS) forest: Forests that areimportant to local communities or that have highcarbon or biodiversity values.
High Forest Cover Country (HFCC): Countries
having more than 60% forest cover; less than 1%
oil palm cover; a deforestation trajectory that is
historically low but increasing or constant; and aknown frontier area for oil palm or where major
areas have been allocated for development.
High Forest Cover Landscape (HFCL): Landscapes
having more than 80% forest cover.
Hotspot: A small area with a relatively hightemperature in comparison to its surroundings.
Human Rights Defenders (HRD): Individuals,
groups and associations who promote andprotect universally recognised human rights
and contribute to the effective eliminationof all forms of violations of human rights andfundamental freedoms of individuals andpeoples. The definition does not include thoseindividuals who commit or propagate violence.
Identity Preserved (IP): Supply chain model
which assures that RSPO Certified palm oil is kept
separate from oil that is not RSPO Certified. Thisoil can be physically traced back to its plantationof origin.
ISEAL Alliance: Global membership association
for credible sustainability standards, which work
together to improve the impact and effectivenessof current and potential future members.
Jurisdictional approach (JA): Certification
approach of palm oil production at thejurisdictional level. The approach facilitatescollaboration between local stakeholders
and regional governments to improve thewelfare of small-scale farmers, curb the use ofenvironmentally destructive practices, and ironout supply chain inefficiencies.
Land Use Change Analysis (LUCA): Assessment
determining changes to vegetation cover andland use over a given timeframe. Must becompleted by RSPO Members prior to any
conversion or new planting.
Impact Update 2023

33

Living Wage (LW): The remuneration received bya worker, for work performed on regular hours, in aparticular place sufficient to afford a decent standardof living for the worker and their family.
Mass Balance (MB): Supply chain model whichallows certified claims to be transferred from one
oil palm product to another, either through physicalblending or administratively under strictly controlled
circumstances.
Metric tonne (MT): A unit of mass equivalent to 1,000
kilogrammes.
New Planting Procedure (NPP): RSPO procedureproviding guidance on how and under what
conditions new oil palm plantings should be carriedout, applicable to all RSPO Members with oil palm
plantation operations.
Oil Palm: A species of palm (elaeis guineensis) andthe principal source of palm oil. Native to west andsouthwest Africa, but is now cultivated in over 40
countries. Ideal growing conditions occur up to 10
degrees either side of the equator.
Ordinary Members: RSPO Membership category
consisting of companies that have direct involvement,or have activities around, the palm oil supply chain.
Only Ordinary members are allowed to submit
resolutions and vote at the General Assembly.
PalmGHG: Calculator developed by the RSPOGreenhouse Gas Working Group (2010–2011) andfurther refined and improved by the RSPO Emission
Reduction Working Group to estimate and monitor
net GHG emissions risks from current estate and milloperations, as well as new plantings.
Palm Kernel Expeller (PKE): By-product of the Palm
Kernel Oil extraction process, as a dried residuecommonly used as meal in animal feed applications.
Also known as Palm Kernel Cake.
Palm Kernel Oil (PKO): Oil extracted from the kernel orcore of the palm fruit.
Palm Oil: Edible oil extracted from the fruit of theoil palm. Palm oil is one of the few highly saturated
vegetable fats, remaining semi-solid at room
temperature and suitable for a wide variety of
applications, from food to personal care to energy
applications.
PalmTrace: RSPO traceability system for certified oilpalm products. Certified members use PalmTrace toregister physical sales and processing activities underthe IP, SG and MB supply chain models, as well as thetrade of RSPO Credits.
Peat: Accumulation of rotting plant material, forming
in wetlands or peatlands.
Remediation and Compensation Procedure (RaCP):
Procedure whereby RSPO Members are required to
remediate and compensate for land clearance without
prior HCV assessment since November 2005.
RSPO Board of Governors (BoG): RSPO management
body comprising 32 RSPO Members, representing
each of the seven RSPO Ordinary membership sectors,
designated for service by the General Assembly in two
year terms.
34

Impact Update 2023

RSPO Complaints and Appeals Procedure (CAP):
Procedure for dealing with complaints arising froma breach of the RSPO Key Documents, and appeals
against the decision of the Complaints Panel in relation
to such Complaints.
RSPO Complaints Panel: High-level body that handles
complaints against RSPO Members.
RSPO Credits / Book and Claim (B&C): Model wherein
the supply chain is not monitored for the presenceof sustainable palm oil. Manufacturers and retailers
support the production of RSPO Certified sustainable
oil palm products through the purchase of credits fromRSPO Certified mills, kernel crushers and independent
smallholders.
RSPO Drainability Assessment (DA) Procedure:
Procedure to assess future subsidence and flood
risks of peatlands, assisting RSPO Members to adjust
management processes to reduce subsidence rates
and prolong the workable lifetime of plantations.
RSPO Principles and Criteria (P&C): Guidelines on
how to produce palm oil sustainably. The basis of allcompany assessments for certification and is reviewed
for relevance at least once every five years.
RSPO Smallholder Support Fund (RSSF): Fundestablished by RSPO to help small, independent
farmers secure sustainable palm oil certification
while minimising costs. The RSSF is funded from 10%of annual revenue generated through the trading of
CSPO.
Segregated (SG): Supply chain model maintaining
separation between sustainable palm oil from different
certified sources and ordinary palm oil throughout the
supply chain. The model assures that RSPO Certified
oil palm products delivered to the end user comes
only from RSPO Certified sources.
Set-aside Area: Areas set aside that are not planned
to be planted, such as peatlands, areas of fragile or
marginal soils, steep slopes, etc., excluding HCV areas.
Smallholders: Farmers growing oil palm on a plantationof less than 50 hectares. Smallholders may be scheme(supplying FFB under a contractual arrangement witha specific palm oil mill) or independent (supplying FFB
to multiple palm oil mills).
Standing Committees: Committees that oversee
RSPO’s overall operations, consisting of representatives
from the RSPO BoG and RSPO Members. Four Standing
Committees have been appointed: Standards,
Assurance, Market Development, and Smallholders.
Supply Chain Associates: RSPO Membership category
consisting of companies that procure, use or tradeless than 500 MT of palm oil annually. Supply Chain
Associates may attend the annual General Assembly
as observers.
United Nations Sustainable Development Goals(SDGs): A set of 17 aspirational global goals to end
poverty, protect the planet and ensure that all people
enjoy peace and prosperity.

RSPO is an international non-profit
organisation formed in 2004 with theobjective to promote the growth anduse of sustainable oil palm products
through credible global standards andengagement of stakeholders.
Roundtable on Sustainable Palm Oil
Unit 13A-1, Level 13A, Menara Etiqa,
No 3, Jalan Bangsar Utama 1,
59000 Kuala Lumpur, Malaysia
Other Offices
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London, United Kingdom
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rspo@rspo.org
www.rspo.org